IKS Health raises ₹1,120 cr from anchor investors; GMP surges 32% as IPO opens for subscription

The grey market premium (GMP) for Rekha Jhunjhunwala family-promoted Inventurus Knowledge Solutions (IKS Health) surged nearly 32% as its initial public offering (IPO) opened for subscription today. The healthcare support services provider, which looks to raise ₹2,498 crore at a price band of ₹1,265-1,329 per share, was commanding a grey market premium of ₹422 in the unlisted market, indicating estimated listing price at around ₹1,751, up 31.75%.

The three-day IPO will close on December 16, while shares are expected to be listed on the BSE and NSE on December 19, 2024. Investors can bid for a minimum of one lot which has 11 shares in it and in multiple thereafter.

The IPO of Inventurus Knowledge Solutions started on a slow note, with its issue subscribing 0.09 times in the first two hours of bidding so far. The public issue was booked 0.35 times in the retail category and 0.11 times in non institutional investors (NII) segment. The portion set aside for qualified institutional buyers (QIB) is yet to open its account.

A day ahead of opening of the IPO, IKS Health raised ₹1,120.18 crore via anchor book at the upper end of price band of ₹1,329 per equity share. The company allocated 84.29 lakh equity shares to 61 anchor investors, of which over 33% were issued to 12 domestic mutual funds, which had applied through a total of 23 schemes.

The anchor book saw participation from marquee global investors such as Fidelity Funds, Government Pension Fund Global, Abu Dhabi Investment Authority, Prudential Hong Kong, WF Asian Reconnaissance Fund, Destinations International Equity Fund, TIMF Holdings, HSBC Global, Pictet, Pinebridge Global Funds, Societe Generale, Integrated Core Strategies, and Makrana Dunmore Singapore Fund.

Among domestic institutional investors, HDFC Mutual Fund, Aditya Birla Sun Life AMC, Tata Mutual Fund, Axis Mutual Fund, Mirae Asset, Whiteoak Capital, Baroda PNB Paribas MF, Max Life Insurance, Nuvama, Edelweiss, Motilal Oswal MF, 360 ONE, Bajaj Allianz Life Insurance, Union MF, Aditya Birla Sun Life Insurance, SBI General Insurance, Trust MF, and Bajaj Holdings made investment in the company.

Inventurus Knowledge Solutions’ IPO was entirely an offer for sale of 1.88 crore shares by promoter and existing shareholders. Incorporated in 2006, it is a tech-driven healthcare solutions provider focused on the U.S. market.

Analysts at Geojit, Bajaj Broking, and Mehta Equities have recommended investors to “SUBSCRIBE” to the issue.

Bajaj Broking has recommended “Subscribe for Long Term”, citing strong brand amongst healthcare organisations and physicians. “Health expenditure in the U.S. is projected to grow from $4,799 billion in 2023 to $6,216 billion by 2028, reflecting a CAGR of 5.3%. This growth will be driven by an ageing population and a rise in chronic diseases. The total addressable market for provider enablement technology solutions in the U.S. is expected to reach $323 billion by 2028,” it says in a note.

"Investors should also look at IPO offers which come with 100% OFS i.e ₹2,498 cr issue which is an area of concern for new investors. As it is backed by over 15 years of experience and long-standing client relationships, IKS is well-positioned to capitalise on the growing demand for integrated healthcare solutions," said Rajan Shinde, Research Analyst, Mehta Equities Ltd.

"At the upper price band of ₹1,329, IKSL is available at a P/E of 54.6x (on FY25 Annualised), which appears fairly priced. Considering its asset light and scalable model with high margin operations, diversified product offerings, significant expansion potential post acquiring Aquity Holdings, we recommend Sub-scribe rating to the issue on a medium to long term basis," Geojit said in its IPO report.

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